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New Accounting Pronouncements (Tables) | 12 Months Ended
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Dec. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] |
Cumulative Effect on Balance Sheet | Summarized below is the impact of the initial application of ASC 606 on our consolidated balance sheet:
| December 31, 2017 |  | Impact of Adoption of ASC 606 |  | January 1, 2018
Assets |  |  |  |  |
Accounts receivable, net | $ | 267.5 |  |  | $ | (36.0 | ) |  | $ | 231.5 |
Inventories, net | 143.0 |  |  | (40.2 | ) |  | 102.8 |
Contract assets | — |  |  | 70.7 |  |  | 70.7 |
Other current assets | 97.7 |  |  | (3.6 | ) |  | 94.1 |
Deferred income taxes | 50.9 |  |  | (0.9 | ) |  | 50.0 |
Liabilities |  |  |  |  |
Contract liabilities | — |  |  | 86.9 |  |  | 86.9 |
Accrued expenses | 292.6 |  |  | (99.0 | ) |  | 193.6 |
Other long-term liabilities | 885.8 |  |  | (1.6 | ) |  | 884.2 |
Equity |  |  |  |  |
Accumulated other comprehensive income | 250.1 |  |  | (0.3 | ) |  | 249.8 |
Retained deficit | $ | (742.3 | ) |  | $ | 4.0 |  |  | $ | (738.3 | )
Summarized below is a comparison of our consolidated statement of operations and comprehensive income for the year ended December 31, 2018 and consolidated balance sheet as of December 31, 2018 as prepared under the provisions of ASC 606 to a presentation of these financial statements under the prior revenue recognition guidance. As previously discussed, the most significant impact of adopting ASC 606 relates to our power transformer business where, under ASC 606, revenues for power transformers are now being recorded over time versus at a point in time under the prior revenue recognition guidance. The initial transition to ASC 606 resulted in a reduction of inventory and deferred revenue (previously presented within “Accrued expenses”) and an increase to contract assets, as indicated in Note 3. Contract assets and contract liabilities are now separately presented within our consolidated balance sheet (previously included in “Accounts receivable, net” and “Accrued expenses”, respectively). Additionally, and as noted below, the difference in revenue and earnings under prior revenue recognition guidance during the year ended December 31, 2018 is due primarily to the timing of power transformer deliveries.
| Year ended December 31, 2018
Consolidated statement of operations and comprehensive income | Reported |  | Effect of ASC 606 Adoption |  | Under Prior Revenue Recognition Guidance
Revenues | $ | 1,538.6 |  |  | $ | (14.2 | ) |  | $ | 1,524.4 |
Cost of products sold | 1,127.9 |  |  | (11.6 | ) |  | 1,116.3 |
Selling, general and administrative | 292.6 |  |  | (0.6 | ) |  | 292.0 |
Operating income | 107.6 |  |  | (2.0 | ) |  | 105.6 |
Income from continuing operations before income taxes | 79.6 |  |  | (2.0 | ) |  | 77.6 |
Income tax provision | (1.4 | ) |  | 0.5 |  |  | (0.9 | )
Income from continuing operations | 78.2 |  |  | (1.5 | ) |  | 76.7 |
Net income | $ | 81.2 |  |  | $ | (1.5 | ) |  | $ | 79.7 |
Comprehensive income | $ | 76.0 |  |  | $ | (0.5 | ) |  | $ | 75.5 |
Basic income per share of common stock: |  |  |  |  |
Income from continuing operations | $ | 1.82 |  |  | $ | (0.04 | ) |  | $ | 1.78 |
Net income per share | $ | 1.89 |  |  | $ | (0.04 | ) |  | $ | 1.85 |
Diluted income per share of common stock: |  |  |  |  |
Income from continuing operations | $ | 1.75 |  |  | $ | (0.03 | ) |  | $ | 1.72 |
Net income per share | $ | 1.82 |  |  | $ | (0.03 | ) |  | $ | 1.79 |
| As of December 31, 2018
Consolidated balance sheet | Reported |  | Effect of ASC 606 Adoption |  | Under Prior Revenue Recognition Guidance
Accounts receivable, net | $ | 269.1 |  |  | $ | 33.2 |  |  | $ | 302.3 |
Contract assets | 91.2 |  |  | (91.2 | ) |  | — |
Inventories, net | 128.8 |  |  | 52.1 |  |  | 180.9 |
Other current assets | 40.5 |  |  | 4.1 |  |  | 44.6 |
Total current assets | 598.4 |  |  | (1.8 | ) |  | 596.6 |
Deferred income taxes | 24.4 |  |  | 1.4 |  |  | 25.8 |
TOTAL ASSETS | $ | 2,057.5 |  |  | $ | (0.4 | ) |  | $ | 2,057.1 |
Contract liabilities | $ | 79.5 |  |  | $ | (79.5 | ) |  | $ | — |
Accrued expenses | 183.7 |  |  | 82.0 |  |  | 265.7 |
Total current liabilities | 470.2 |  |  | 2.5 |  |  | 472.7 |
Other long-term liabilities | 817.3 |  |  | 1.6 |  |  | 818.9 |
Total long-term liabilities | 1,172.4 |  |  | 1.6 |  |  | 1,174.0 |
Retained deficit | (650.1 | ) |  | (5.5 | ) |  | (655.6 | )
Accumulated other comprehensive income | 244.9 |  |  | 1.0 |  |  | 245.9 |
Total equity | 414.9 |  |  | (4.5 | ) |  | 410.4 |
TOTAL LIABILITIES AND EQUITY | $ | 2,057.5 |  |  | $ | (0.4 | ) |  | $ | 2,057.1 |

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